Moody’s threatens downgrade as wobbling economies in Italy, Spain and Ireland will hit life and general insurance sales
Moody’s threatened Aviva with a downgrade yesterday, stressing that it’s exposure to Italy, Spain and Ireland could cause problems.
The three countries make up 20% of Aviva’s total life and general insurance sales. Italy is 10% and Spain and Ireland are 6% and 4% respectively.
Moody’s added: “Consumer demand for life insurance products in the UK (the single largest market for Aviva) is set to remain depressed, with the UK life sector also subject to structural challenges ahead, including the implementation of Solvency II and the retail distribution review.”
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